The GBP/USD pair formally spent the first trading day of the new week in a downward movement, as evidenced by the downward trend line, which was not overcome. However, looking closely, it is clearly seen that the pair moved more sideways during the day. Thus, one should have considered sell signals on Monday, and one such was generated by the MACD indicator. Unfortunately, as good as the day was for the euro/dollar pair, it was just as unlucky for the pound/dollar pair. However, we managed to avoid losses on this deal, since the price fell more than 20 points after a signal was formed, respectively, novice traders had to place a Stop Loss order at breakeven. It was on this order that the deal was eventually closed. In general, the downward trend continues, but also only within the horizontal channel. Thus, it will not be surprising if the price surpasses this trend line and rushes to the 1.3999 level by tomorrow.
Several signals were generated on the 5-minute timeframe on Monday. However, before starting to consider them, look at the movement itself during the day - an absolute flat. Moreover, the levels that have acted as resistance or support in recent days turned out to be weak, and the price quietly crossed them on Monday. These levels are now marked with a dotted line. They are no longer relevant and new levels have been formed instead (1.3822 and 1.3873). Now let's move on to signals. The first one was formed in the morning - for selling. The MACD indicator turned down. However, the pair did not continue to move down, and this deal had to be closed by the MACD reversal to the upside at a loss of up to 10 points. Then, two more sell signals were generated from the MACD indicator, but the first one closed to zero at Stop Loss (the price went down by about 20 points, so it was necessary to set Stop Loss to breakeven), but we managed to earn money on the second signal, in the end we reached the nearest target level at 1.3830. The profit was 30-35 points. The price crossed the 1.3862 level several times during the day, as well as the 1.3830 level, which could be used by novice traders as signals. The first upward crossing of the 1.3862 level could serve as a reason for opening long positions, and the second downward crossing - for opening short positions. Both trades brought losses, since the pair did not continue to move in the right direction. Thus, these trades could eat up all the profits from a single winning trade for the day. It was not necessary to open more positions from 1.3862, since it has already become clear that the level has lost its strength and relevance. As for the 1.3830 level, the pair behaved very incomprehensibly around it, without rebounding and not really breaking through it. Therefore, one should not have opened positions here either. As a result, at best, beginners could close the day with zero profit, at worst, with minimal losses.
How to trade on Tuesday:
On Tuesday, we recommend trading again in accordance with the downward trend that formed on the 30-minute timeframe. However, on Tuesday, in addition to important speeches by Jerome Powell and Janet Yellen, there will also be speeches by Andrew Bailey and several officials from the Bank of England. And besides this, we will also receive reports on unemployment in the UK and changes in average wages. Therefore, there are a large number of events and each one can affect the pair's movement. Therefore, you should be very careful. It is not recommended to open deals during important fundamental or macroeconomic events, and it is necessary to set Stop Loss. The levels 1.3873 and 1.3822 will be important on the 5-minute timeframe. You can open trades in case of clear rebounds from these levels or breakthroughs, but you should also be extremely careful due to the many important events and reports.
